Azernews.Az

By Nigar Abbasova

Energy-rich Iran, which is engaged in recovering of its energy sector following the sanctions era, is now seeking to cooperate with foreign companies.

Iran's Persian Gulf Petrochemical Industries Company (PGPIC), exporter of petrochemical products, needs investments worth some €6 billion ($ 6.69 billion), said Issa Mashayekhi, the managing director of PCCI (Petrochemical Commercial Company International), which is in charge of holding talks with international companies for financing petrochemical projects and attracting investments for PGPIC projects, SHANA agency reported.

He said that PGPIC accounts for some 45 percent of export of Iran’s petrochemical products, while its export value is over €9 billion a year ($ 10.04 billion). Mashayekhi mentioned that the company is currently relying on domestic sources of investment.

He said that assets of the company currently exceed $16 billion, adding that the company accounts for 11 percent of all assets of Iran’s stock market.

International interest in relation to Iran has been growing since Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) reached a deal, lifting sanctions and allowing the country to regain its positions.

Mashayekhi earlier said that European companies were keen on joining the petrochemical projects carried out by PGPIC, adding that implementation of the Joint Comprehensive Plan of Action (JCPOA) had been very influential in resumption of talks with international petrochemical heavyweights.

The lifting of sanctions in January has set the stage for Iranian companies to boost petrochemical exports to European countries.

The company signed an agreement worth $1 billion with Italian Maire Tecnimont engineering company in February 2016, to build refineries and petrochemical plants in Iran.

Moreover, SHANA earlier reported that the companies from Japan and South Korea had voiced their interest to participate in Iran’s petrochemical projects and that they were expected to invest €520 million in form of Usance LC (Letter of credit).

Being established in January 2008, PGPIC is mainly aimed at investment development and expansion of local and foreign partnerships.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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